Duluth’s 6-month-old intermodal terminal on Sept. 20 drew an official ribbon cutting, local and international transportation business leaders, politicians and some enthusiastic praise from those who helped to make it happen.

The CN Duluth Intermodal Terminal, also called a “ramp,” links the city as a definitive transportation hub to the East, West and Gulf coasts – and to the world – via Canadian National Railway.

Duluth has long been an international port, of course, but this recent development strengthens its position as a rail and road hub.

“It brings traffic opportunities to the region that literally have been passing us by!” Vanta Coda, executive director of the Duluth Seaway Port Authority, told Lake Superior Magazine. “The CN mainline from the west into Chicago runs right through our region. Intermodal is the most common form of international transport. This completes our service offering and plugs the region into a completely different level of global competitiveness.”

Until recently, Duluth had not been a designated terminal for regular cross-country transportation of those intermodal containers – standardized cargo containers that are used to transport everything from perishable food to retail items like TV sets and sofas to heavy equipment.

The containers can be loaded efficiently from anywhere in the world onto ships, then docked at coastal ports and as easily connected to both rail and trucking services. The West Coast, for example, welcomes thousands of the large vessels each year, ocean-going ships too big to fit through the Welland Canal and other locks along the St. Lawrence Seaway.

Only a few places in the Upper Midwest handle directing of the intermodal containers from major shipping points to disperse around the country. With the opening this spring of the CN Duluth Intermodal Terminal, Duluth became one of those few – with a distinctive, and advantageous, difference from many.

“What makes us unique is that most intermodal terminals out there simply move containers between trucks and rail cars and don’t normally touch the contents,” says Jonathan Lamb, president of Lake Superior Warehousing. “We provide all those value-added services.”

Duluth’s operation not only facilitates the moving of those containers from place to place, it also can take out and store the products in its warehouses or can stuff containers to be transported elsewhere. It also improves opportunities for local trucking operations, which often take the rail-delivered containers or products to their final destinations.

All of this, emphasizes Jonathan, makes this operation more flexible and more economical for regional producers wanting to bid services and sell their products regionally, nationally and internationally.

“With their raw materials, it’s easier to do business, and they’re saving by coming into Duluth,” Jonathan says, adding some may see a savings of up to one-third in freight costs. “If they can save that kind of money on freight … that, in turn, makes them more competitive when bidding on projects that translates to more sales and the opportunity to reinvest in their businesses. There’s an economic development spin-off that’s really good for the entire region.”

The specific partnership for the CN Duluth Intermodal Terminal is between CN and Duluth Cargo Connect, itself a public-private partnership of the Duluth Seaway Port Authority and Lake Superior Warehousing. The property is on port-owned land, part of a Foreign Trade Zone, and able to handle moving overweight containers off railcars. The operation has taken on additional staff on the docks, in the warehouse and in the front office thanks to the new options, Jonathan says. CN also owns the Great Lakes Fleet based in Duluth.

“CN partnered with us and set up their newest intermodal terminal in North America,” Jonathan says. “To have one now in our neighborhood is great.”

Joining Vanta and Jonathan on the dais at the ceremony Thursday, were Keith Reardon, vice president of CN Intermodal & Automotive in Toronto, and Lonny Kubas, director of marketing for CN Intermodal International, as well Duluth Mayor Emily Larson and U.S. Representative Rick Nolan of Minnesota’s District 8.

"CN’s innovative partnership with Duluth Cargo Connect opens up a new logistics supply chain and growth opportunities for the port’s partners and shippers in the region," Keith told Lake Superior Magazine.

Asked if this new intermodal ability via Duluth was good for maintaining clients or for growth of new markets, he replied, "Both. We are the only railroad in this market with direct service to East, West and Gulf coast ports. Opening our intermodal location here in Duluth connects the region to imports and exports via our rail network. This helps avoids the congestion in large urban intermodal facilities."

This new development is part of a long vision, says the Duluth Seaway Port Authority's executive director.

“The port authority has long pursued intermodal as an opportunity,” Vanta says. “Two years ago we found momentum within the CN and put our efforts behind selling the vision to the corporation. We had discussed this with other carriers, but the CN really was the one who could see our vision and really are the best fit for our region because of their network.”

Expanding Duluth transportation services on the water, by rail and by truck is critical to maintain the port’s position as an international link.

“With freight expected to grow 40 percent in over the next 20 to 25 years, more options are a positive for everyone,” Vanta says. “The current freight system will need to expand, and Duluth is on that cutting edge.”